The United States is home to a diverse population that includes many individuals who are not U.S. citizens.Thus, it is not unexpected that an estate planner (planner) may be asked to prepare an estate plan for a married couple, one of whom is U.S. citizen (USC) and the other a resident alien (RA).
When faced with such a request, the planner’s first inquiry should focus on the circumstances under which the RA became a resident of the United States. Without integrating family history, citizenship,residence,and domicile information into the tax-sensitive provisions of the plan, the plan may have significant adverse tax consequences at the death of the USC spouse.The planner also must have a thorough understanding of Colorado law regarding residency and domicile, as well as federal transfer tax rules applicable to an RA.1